Part 23

I can not see that differences of opinion concerning the extent to which silver ought to be coined or used in our currency should interfere with the counsels of those whose duty it is to rectify evils now apparent in our financial situation. They have to consider the question of national credit and the consequences that will follow from its collapse. Whatever ideas may be insisted upon as to silver or bimetallism, a proper solution of the question now pressing upon us only requires a recognition of gold as well as silver and a concession of its importance, rightfully or wrongfully acquired, as a basis of national credit, a necessity in the honorable discharge of our obligations payable in gold, and a badge of solvency. I do not understand that the real friends of silver desire a condition that might follow inaction or neglect to appreciate the meaning of the present exigency if it should result in the entire banishment of gold from our financial and currency arrangements.

Besides the Treasury notes, which certainly should be paid in gold, amounting to nearly $500,000,000, there will fall due in 1904 one hundred millions of bonds issued during the last year, for which we have received gold, and in 1907 nearly six hundred millions of 4 per cent bonds issued in 1877. Shall the payment of these obligations in gold be repudiated? If they are to be paid in such a manner as the preservation of our national honor and national solvency demands, we should not destroy or even imperil our ability to supply ourselves with gold for that purpose.

While I am not unfriendly to silver and while I desire to see it recognized to such an extent as is consistent with financial safety and the preservation of national honor and credit, I am not willing to see gold entirely banished from our currency and finances. To avert such a consequence I believe thorough and radical remedial legislation should be promptly passed. I therefore beg the Congress to give the subject immediate attention.

In my opinion the Secretary of the Treasury should be authorized to issue bonds of the Government for the purpose of procuring and maintaining a sufficient gold reserve and the redemption and cancellation of the United States legal-tender notes and the Treasury notes issued for the purchase of silver under the law of July 14, 1890. We should be relieved from the humiliating process of issuing bonds to procure gold to be immediately and repeatedly drawn out on these obligations for purposes not related to the benefit of our Government or our people. The principal and interest of these bonds should be payable on their face in gold, because they should be sold only for gold or its representative, and because there would now probably be difficulty in favorably disposing of bonds not containing this stipulation. I suggest that the bonds be issued in denominations of twenty and fifty dollars and their multiples and that they bear interest at a rate not exceeding 3 per cent per annum. I do not see why they should not be payable fifty years from their date. We of the present generation have large amounts to pay if we meet our obligations, and long bonds are most salable. The Secretary of the Treasury might well be permitted at his discretion to receive on the sale of bonds the legal-tender and Treasury notes to be retired, and of course when they are thus retired or redeemed in gold they should be canceled.

These bonds under existing laws could be deposited by national banks as security for circulation, and such banks should be allowed to issue circulation up to the face value of these or any other bonds so deposited, except bonds outstanding bearing only 2 per cent interest and which sell in the market at less than par. National banks should not be allowed to take out circulating notes of a less denomination than $10, and when such as are now outstanding reach the Treasury, except for redemption and retirement, they should be canceled and notes of the denomination of $10 and upward issued in their stead. Silver certificates of the denomination of $10 and upward should be replaced by certificates of the denominations under $10.

As a constant means for the maintenance of a reasonable supply of gold in the Treasury, our duties on imports should be paid in gold, allowing all other dues to the Government to be paid in any other form of money.

I believe all the provisions I have suggested should be embodied in our laws if we are to enjoy a complete reinstatement of a sound financial condition. They need not interfere with any currency scheme providing for the increase of the circulating medium through the agency of national or State banks that may commend itself to the Congress, since they can easily be adjusted to such a scheme. Objection has been made to the issuance of interest-bearing obligations for the purpose of retiring the noninterest-bearing legal-tender notes. In point of fact, however, these notes have burdened us with a large load of interest, and it is still accumulating. The aggregate interest on the original issue of bonds, the proceeds of which in gold constituted the reserve for the payment of these notes, amounted to $70,326,250 on January 1, 1895, and the annual charge for interest on these bonds and those issued for the same purpose during the last year will be $9,145,000, dating from January 1, 1895.

While the cancellation of these notes would not relieve us from the obligations already incurred on their account, these figures are given by way of suggesting that their existence has not been free from interest charges and that the longer they are outstanding, judging from the experience of the last year, the more expensive they will become.

In conclusion I desire to frankly confess my reluctance to issuing more bonds in present circumstances and with no better results than have lately followed that course. I can not, however, refrain from adding to an assurance of my anxiety to cooperate with the present Congress in any reasonable measure of relief an expression of my determination to leave nothing undone which furnishes a hope for improving the situation or checking a suspicion of our disinclination or disability to meet with the strictest honor every national obligation.

GROVER CLEVELAND.

[Footnote 14: See pp. 553-556.]

EXECUTIVE MANSION, _January 30, 1895_.

_To the House of Representatives_:

In compliance with a resolution of the House of Representatives of the 28th instant, the Senate concurring, I herewith return the bill (H.R. 6186) entitled "An act to pension Maria Davis."

GROVER CLEVELAND.

EXECUTIVE MANSION, _Washington, February 4, 1895_.

_To the Senate of the United States_:

In response to the resolution of the Senate dated December 6, 1894, requesting that copies of correspondence in regard to the claim of Antonio Maximo Mora against the Government of Spain exchanged since my last message to the Senate on the same subject, dated June 20, 1894,[15] be communicated to it if not incompatible with the public interests, I transmit herewith a report of the Secretary of State, inclosing copies of further correspondence exchanged between the Governments of the United States and Spain since the date of my last message to the Senate, December 11, 1894.[16]

GROVER CLEVELAND.

[Footnote 15: See p. 476.]

[Footnote 16: See p. 557.]

EXECUTIVE MANSION, _Washington, February 4, 1895_.

_To the House of Representatives_:

In response to the resolution of the House of Representatives of the 1st instant, calling for certain information touching the recent insurrection in the Hawaiian Islands, I transmit herewith a report of the Secretary of State, with accompanying papers.

GROVER CLEVELAND.

EXECUTIVE MANSION, _February 7, 1895_.

_To the House of Representatives_:

In compliance with a resolution of the House of Representatives of the 2d instant, the Senate concurring, I return herewith the bill (H.R. 5377) entitled "An act granting a pension to Richard R. Knight."

GROVER CLEVELAND.

EXECUTIVE MANSION, _Washington, February 7, 1895_.

_To the Senate_:

I transmit herewith, in response to a resolution of the Senate of the 16th ultimo, a report from the Secretary of State, accompanied by copies of certain correspondence touching the enforcement of the provisions of the tariff act of 1894.

GROVER CLEVELAND.

EXECUTIVE MANSION, _February 8, 1895_.

_To the Congress of the United States_:

Since my recent communication to the Congress calling attention to our financial condition and suggesting legislation which I deemed essential to our national welfare and credit[17] the anxiety and apprehension then existing in business circles have continued.

As a precaution, therefore, against the failure of timely legislative aid through Congressional action, cautious preparations have been pending to employ to the best possible advantage, in default of better means, such Executive authority as may without additional legislation be exercised for the purpose of reenforcing and maintaining in our Treasury an adequate and safe gold reserve.

In the judgment of those especially charged with this responsibility the business situation is so critical and the legislative situation is so unpromising, with the omission thus far on the part of Congress to beneficially enlarge the powers of the Secretary of the Treasury in the premises, as to enjoin immediate Executive action with the facilities now at hand.

Therefore, in pursuance of section 3700 of the Revised Statutes, the details of an arrangement have this day been concluded with parties abundantly able to fulfill their undertaking whereby bonds of the United States authorized under the act of July 14, 1875, payable in coin thirty years after their date, with interest at the rate of 4 per cent per annum, to the amount of a little less than $62,400,000, are to be issued for the purchase of gold coin, amounting to a sum slightly in excess of $65,000,000, to be delivered to the Treasury of the United States, which sum added to the gold now held in our reserve will so restore such reserve as to make it amount to something more than $100,000,000. Such a premium is to be allowed to the Government upon the bonds as to fix the rate of interest upon the amount of gold realized at 3-3/4 per cent per annum. At least one-half of the gold to be obtained is to be supplied from abroad, which is a very important and favorable feature of the transaction.

The privilege is especially reserved to the Government to substitute at par within ten days from this date, in lieu of the 4 per cent coin bonds, other bonds in terms payable in gold and bearing only 3 per cent interest if the issue of the same should in the meantime be authorized by the Congress.

The arrangement thus completed, which after careful inquiry appears in present circumstances and considering all the objects desired to be the best attainable, develops such a difference in the estimation of investors between bonds made payable in coin and those specifically made payable in gold in favor of the latter as is represented by three-fourths of a cent in annual interest. In the agreement just concluded the annual saving in interest to the Government if 3 per cent gold bonds should be substituted for 4 per cent coin bonds under the privilege reserved would be $539,159 amounting in thirty years, or at the maturity of the coin bonds, to $16,174,770.

Of course there never should be a doubt in any quarter as to the redemption in gold of the bonds of the Government which are made payable in coin. Therefore the discrimination, in the judgment of investors, between our bond obligations payable in coin and those specifically made payable in gold is very significant. It is hardly necessary to suggest that, whatever may be our views on the subject, the sentiments or preferences of those with whom we must negotiate in disposing of our bonds for gold are not subject to our dictation.

I have only to add that in my opinion the transaction herein detailed for the information of the Congress promises better results than the efforts previously made in the direction of effectively adding to our gold reserve through the sale of bonds, and I believe it will tend, as far as such action can in present circumstances, to meet the determination expressed in the law repealing the silver-purchasing clause of the act of July 14, 1890, and that, in the language of such repealing act, the arrangement made will aid our efforts to "insure the maintenance of the parity in value of the coins of the two metals and the equal power of every dollar at all times in the markets and in the payment of debts."

GROVER CLEVELAND.

[Footnote 17: See pp. 561-565.]

EXECUTIVE MANSION, _February 8, 1895_.

_To the Senate and House of Representatives_:

I transmit herewith, for the information of the Congress, a copy of a telegraphic dispatch just received from Mr. Willis, our minister to Hawaii, with a copy of the reply thereto which was immediately sent by the Secretary of State.

GROVER CLEVELAND.

EXECUTIVE MANSION, _February 11, 1895_.

_To the Senate_::

On the 8th day of January I received a copy of the following Senate resolution:

_Resolved_, That the President be requested, if not incompatible with the public interests, to communicate to the Senate all reports, documents, and other papers, including logs of vessels, relating to the enforcement of the regulations respecting fur seals adopted by the Governments of the United States and Great Britain in accordance with the decision of the Tribunal of Arbitration convened at Paris and the resolutions under which said reports are required to be made, as well as relating to the number of seals taken during the season of 1894 by pelagic hunters and by the lessees of the Pribilof and Commander islands; also relating to the steps which may have been taken to extend the said regulations to the Asiatic waters of the North Pacific Ocean and Bering Sea and to secure the concurrence of other nations in said regulations, and, further, all papers not heretofore published, including communications of the agent of the United States before said tribunal at Paris, relating to the claims of the British Government on account of the seizure of the sealing vessels in Bering Sea.

In compliance with said request I herewith transmit sundry papers, documents, and reports which have been returned to me by the Secretary of State, the Secretary of the Treasury, and the Secretary of the Navy, to whom said resolution was referred. I am not in possession of any further information touching the various subjects embodied in such resolution.

It will be seen from a letter of the Secretary of the Navy accompanying the papers and documents sent from his Department that it is impossible to furnish at this time the complete log books of some of the naval vessels referred to in the resolution, but I venture to express the hope that the reports of the commanders of such vessels herewith submitted will be found to contain in substance so much of the matters recorded in said log books as are important in answering the inquiries addressed to me by the Senate.

GROVER CLEVELAND.

EXECUTIVE MANSION, _Washington, February 12, 1895_.

_To the Senate and House of Representatives_:

I transmit herewith, for the information of the Congress, a communication from the Secretary of State, covering the report of the Director of the Bureau of the American Republics for the year 1894.

GROVER CLEVELAND.

EXECUTIVE MANSION, _February 14, 1895_.

_To the Senate and House of Representatives_:

I transmit herewith the eighth special report of the Commissioner of Labor, which relates to "the housing of the working people" in different countries.

GROVER CLEVELAND.

EXECUTIVE MANSION, _Washington, February 26, 1895_.

_To the Senate_:

I transmit herewith, in response to a resolution of the Senate of the 29th ultimo, a report from the Secretary of State, accompanied by copies of correspondence touching Samoan affairs.

GROVER CLEVELAND.

VETO MESSAGES.

EXECUTIVE MANSION, _January 14, 1895_.

_To the House of Representatives_:

I herewith return without my approval House bill No. 7451, entitled "An act to authorize the entry of land for gravel pits and reservoir purposes and authorizing the grant of right of way for pipe lines."

The first section of this bill permits the sale to railroad companies, in the discretion of the Secretary of the Interior, under certain restrictions and at an appraised value, certain public lands to be used by said companies for gravel pits or the construction of reservoirs. It also permits grants of the right of way for pipe lines connecting such reservoirs with the railways of said companies.

The second, third, and fourth sections of the bill relate to the purchase by any citizen of the United States, or any association of citizens, or any ditch or water company, of public lands suitable for reservoir purposes at such a price as the Secretary of the Interior shall prescribe, not less than $2 per acre.

The right to purchase these lands is given by the sections last referred to "under rules and regulations prescribed by the Secretary of the Interior."

I think the expediency and propriety of disposing of these lands for the purposes specified should in each case be determined by the Secretary of the Interior, as well as the rules and regulations governing such disposition.

The objections to the bill, however, which appear to be the most serious are found in its fifth and last section, which provides:

That any State or any county or district organization duly organized under the laws of any State or Territory may apply for any of the storage-reservoir sites not reserved by the United States, situated on unentered public lands, for the storage of water for irrigating, mining, or other useful purposes, whereupon the Secretary of the Interior shall set aside and withdraw from public sale or other disposition such site or sites and permit the use thereof for either or all of such purposes.

These provisions do not seem to be in harmony with prior laws by which, under certain conditions, arid lands may be conveyed to States for the purpose of irrigation, and it is not clear what is intended by the words "any of the storage-reservoir sites not reserved by the United States."

The apparent purpose and effect of the section is to give to the organizations mentioned the right to select such land as may present eligible reservoir sites not reserved and upon unentered lands, and demand of the Secretary of the Interior a grant of the same, leaving no discretion on the subject to him or to any other officer of the Government; and these grants are to be made without any compensation to the Government and without any specific requirement of the amount or kind of work to be done or improvements to be made upon such sites.

The grants may be demanded not only for the storage of water for irrigating purposes, but for "mining and other useful purposes." Inasmuch as no officer of the Government is vested with any discretion in the premises, the pretext that the "purpose" to be accomplished is "useful" might result in the use of these sites in a manner prejudicial to the surrounding public domain and destructive of the utilization of such sites for irrigating purposes.

The wise and prudent safeguards which have been incorporated in other legislation relating to the disposition of arid public lands and their irrigation seem to have been to such an extent overlooked in the construction of the bill under consideration that, in my judgment, if it should become the law a beneficent policy which the Government has entered upon in the interest of agriculture would be seriously endangered.

GROVER CLEVELAND.

EXECUTIVE MANSION, _February 1, 1895_.

_To the Senate_:

I herewith return without my approval Senate bill No. 2338, entitled "An act granting to the Gila Valley, Globe and Northern Railway Company a right of way through the San Carlos Indian Reservation, in the Territory of Arizona."

The reservation through which it is proposed to construct a railroad under the provisions of this bill is inhabited by tribes of Indians which in the past have been most troublesome and whose depredations on more than one occasion have caused loss of life, destruction of property, and serious alarm to the people of the surrounding country; and their condition as to civilization is not now so far improved as to give assurance that in the future they may not upon occasion make trouble.

The discontent among the Indians which has given rise to disturbances in the past has been largely caused by trespass upon their lands and interference with their rights by the neighboring whites. I am in very great doubt whether in any circumstances a road through their reservation should at this time be permitted, and especially since the route, which is rather indefinitely described in the bill, appears to pass through the richest and most desirable part of their lands. In any event, I am thoroughly convinced that the construction of the road should not be permitted without first obtaining the consent of these Indians. This is a provision which has been insisted upon, so far as I am aware, in all the like bills which have been approved for a long time, and I think it should especially be inserted in this bill if, even upon any conditions, it is thought expedient to permit a railroad to traverse this reservation.

The importance of this consent does not rest solely upon the extent to which the Indians have the right of ownership over this land. The fact that the procurement of this consent is the most effective means of allaying the discontent which might arise and perhaps develop into a train of lamentable and destructive outbreaks of violence particularly emphasizes its importance.

GROVER CLEVELAND.

EXECUTIVE MANSION, _February 5, 1895_.

_To the House of Representatives_:

I return herewith without approval House bill No. 5368, entitled "An act for the relief of H.W. McConnell."

The reports of both the Senate and House committees, which favorably reported this bill, disclose an intention to partially relieve the former postmaster at Jacksboro, in the State of Texas, from liability on account of two remittances of postal funds which he dispatched at different times during the year 1883 to be deposited at Dallas, in the same State, and which were lost by robberies of the stage conveying the same. In dealing with the first remittance the committees report that the postmaster should be relieved of liability to the amount of only $94, the loss of the remainder of the money being chargeable to his neglect and violation of postal regulations. As to the second remittance, the committees report that by reason of like neglect and violation of regulations the postmaster should be held responsible for the loss of all the money transmitted except the sum of $42.

For these two sums, amounting to $136, an appropriation is made for the benefit of H.W. McConnell.

The name of the postmaster intended to be relieved is H.H. McConnell, as appears by the records of the Post-Office Department. The person to whom the money appropriated should be paid is therefore not correctly named in the bill.

An examination of this postmaster's accounts discloses the further fact that the amount proposed to be appropriated for his relief is too large by $42, that being the sum allowed him by reason of the second stage robbery. This item has already been credited to him in the adjustment of his accounts at the Post-Office Department, and the claim for its reimbursement has been thereby extinguished.

GROVER CLEVELAND.

EXECUTIVE MANSION, _February 12, 1895_.

_To the Senate_:

I return herewith without approval Senate bill No. 143, entitled "An act for the relief of the heirs of D. Fulford."